TIDMWSP
RNS Number : 9867G
Wynnstay Properties PLC
13 June 2013
Wynnstay Properties PLC
Preliminary Results for Year Ended 25th March 2013
CHAIRMAN'S STATEMENT
I am pleased to report that your company has enjoyed another
successful year in its core commercial property activities despite
the continuing challenging economic environment to which I referred
when I wrote to you at this time last year. The portfolio has
continued to be actively managed and we continue to search out good
quality investments that will add value for shareholders, in terms
of income and capital value, in the medium to longer term.
Overview of financial performance
Against this background, the financial performance for the year
may be summarised as follows:
Change 2013 2012
Property income +8.3% GBP1,628,000 GBP1,503,000
Profit before movement in fair (4.7)% GBP1,103,000 GBP1,158,000
value of investment properties
and taxation
Earnings/(loss) per share (7.1p) 4.3p
Dividends per share, paid and
proposed: +2.8% 10.8p 10.5p
Net asset value per share: (3.9)% 438p 456p
Net gearing (9.7)% 40.6% 50.3%
Property income increased to GBP1.63 million from GBP1.5 million
last year, reflecting the benefit of new streams of rental income
from the latest additions to our portfolio, namely the two retail
warehouse units at Lewes and the office premises at Surbiton. The
purchases completed in March and April 2012 respectively, profit
before the movement in fair value of the investment properties fell
marginally to GBP1,103,000 reflecting in part the lower profits
than in the preceding year from selling property. During the year,
we sold our industrial unit at Alton at a capital gain of
GBP100,000 whereas in 2012 we sold two properties at a gain of
GBP346,000. The income from the two new purchases has more than
compensated for the loss of income from the sale of the Alton
property.
Earnings per share were reduced compared to the previous year
due to the reduction in the value of the portfolio mentioned below.
As I have explained in previous reports, accounting rules now
require any positive or negative movements in the value of the
portfolio to be reflected both in the statement of comprehensive
income (thus affecting earnings) as well as in the statement of
financial position (thus affecting net asset value). This means
that, especially in a small company such as Wynnstay, modest
changes (up or down) in the value of the portfolio from year to
year can have a dramatic impact on earnings per share, even though
the impact on net asset value is far less pronounced, with a
reduction of 3.9%.
Property Management and Portfolio
Once again, it has been a busy year on the management side. We
have been successful in reletting, renewing or varying 13 leases
across the portfolio. In addition to those mentioned in my interim
statement concerning Aylesford, Heathfield, Norwich, St Neots and
Uckfield, I am pleased to say that we have renewed or extended
leases for two units at the Oakcroft Business Park at Chessington
as well as two further units at Aylesford, our industrial unit at
Aldershot, one of the industrial units at Uckfield and the retail
premises at Shirley. The terms agreed in some cases have had to
reflect current market conditions, resulting in shorter leases or
lower rents but your Board is content that the agreements reached
are the best achievable.
In this connection and as I have previously noted, we believe
that strong, positive relationships with our tenants are important
and we continue to work closely with them to understand their
current and future needs and thus to reduce the incidence of vacant
premises and have visibility of possible tenant defaults arising in
the portfolio, with their attendant costs and loss of income.
On the other hand, economic conditions facing many of our
tenants are very tough, and I regret to report that our
longstanding tenant at Hertford, a firm of printers, went out of
business late last year. The premises have been subject to some
minor refurbishment works prior to re-letting and are now being
offered in the market. Whilst there has been some interest for a
variety of possible uses, it may well be some time before they
become income producing. This business failure, together with a
prudent view of other tenants with a poor payment record, has
resulted in our first significant bad debt for many years of
GBP28,000 which is reflected in this years accounts together with
the refurbishment costs of about GBP20,000.
Apart from the acquisition of the office premises in Surbiton
early in the year already referred to above, we did not make any
other acquisitions during the year although a number of proposals
were actively considered. Towards the very end of the year, we
considered several interesting potential purchases and I am pleased
to report that we negotiated terms and completed the purchase on
one of them in the second half of May. Crown Close Industrial
Estate in Hailsham, East Sussex is an estate of seven small
industrial units, let to predominantly locally established
businesses. We paid GBP905,000 and with passing rents of GBP83,000
it shows an attractive yield of gross 9.2% and 8.7% net. This
estate fits well with our other industrial estate holdings in the
area of Heathfield and Uckfield. At the time of writing, we have a
number of other possible acquisitions under active consideration
and I hope to have further news of these for you in due course.
Portfolio Valuation
As at 25 March 2013, our Independent Valuers, Sanderson
Weatherall, have undertaken the annual valuation of the company's
portfolio at GBP17,700,000, representing a modest fall, on a
like-for-like basis of GBP937,000 or 5.5%, over the valuation at
the end of the prior year. Although disappointing, the Board
consider this to be a satisfactory outcome given the continuing
uncertainties affecting the commercial property market and broader
economic conditions.
Following the revaluation, as at the year-end, the industrial
sector within the portfolio accounted for 60% by value, with the
retail and office elements comprising 18% and 22% respectively.
Borrowings and Gearing
Total borrowings at the year-end were GBP5.4 million (2012 -
GBP7.2 million) and net gearing at the year-end was 40.6% compared
to 50.3% last year. The lower borrowings reflect loan repayments
made following the disposal of our Alton and Twickenham
properties.
As you may recall, the five-year term of our borrowing facility
of GBP8.5 million with Svenska Handelsbanken expires in December
2013. Having tested the market, we have received an indicative
offer from them for a new five year facility of GBP10 million, the
main terms of which have been agreed in principle with the detailed
agreements currently being under negotiation. The Board have no
reason to suppose that this facility will not be taken up, and will
announce an update on the Regulatory News Service and the company's
website as and when the paperwork is finalised.
The Company benefits from the historically very low levels of
interest payable under our existing borrowing facility where the
rate of interest is variable and is linked to LIBOR. As most
businesses negotiating with their bankers have found, the margins
over LIBOR sought by lenders have increased substantially over
those available in 2008 and this will be reflected in our new
facility. However, the Board considers that an increased facility
of GBP10 million on the main terms agreed in principle, is in the
best interest of the Company for its further development. As
regards the prevailing outlook for interest rates generally,
according to most commentators, there seems to be limited prospect
of an increase in rates in the immediate future.
Costs
Our property costs this year were significantly less than in the
prior year, mainly due to the saving in one-off costs relating to
the Twickenham site and the payment of business rates on vacant
premises in that year. Tight control has resulted in administrative
costs also being lower than in the previous year.
Dividend
The Directors are recommending a total dividend for the year of
10.8p per share being a modest increase over the 10.5p paid in the
last year. An increased interim dividend of 3.4p per share was paid
in December 2012 and the Board has considered carefully whether the
final dividend for the year should also be increased, but has
decided against doing so. However, assuming favourable conditions
at the end of the half year, they will consider increasing the
interim dividend for payment in December 2013, with a view to
achieving a better balance between the interim and final dividends.
Accordingly, subject to approval of Shareholders at the Annual
General Meeting, a final dividend of 7.6p per share will be paid on
16th July 2013 to Shareholders on the register on 21st June
2013.
Outlook
As in most recent years, the uncertain prospects for the
recovery of the United Kingdom economy inevitably affect our
business and this is reflected in the reduced value of the
portfolio and, in some cases, in the terms that we are able to
agree with tenants of our properties as well as in the increased
risks of tenant defaults and the costs of empty properties.
However, your Company continues to perform well in all the
circumstances and to offer opportunities for future progress. We
will continue to make changes to the portfolio which will remove
properties that are less able to deliver income and capital growth
and add properties that will improve the quality of our earnings
and the value of our assets in the longer term, with a view to
delivering a better income stream and net asset value for
Shareholders.
Unsolicited approaches to Shareholders
Shareholders are reminded that unsolicited approaches regarding
their shares may be from fraudsters. If you are in any doubt,
please refer to my letter enclosed with last year's Annual Report
(also available on our website: www.wynnstayproperties.co.uk) or to
the website of the Financial Conduct Authority
(www.fca.org.uk/consumers/ scams).
Annual General Meeting
Our Annual General Meeting will be held at the Royal Automobile
Club on Thursday 11th July 2013. As always, I would encourage as
many Shareholders as possible to attend so that they can both take
part in the formal business and meet the Board and other
Shareholders informally before and after the meeting and discuss
the Company's activities.
Colleagues and Advisers
Finally I would like to thank our two executive directors - Paul
Williams, our Managing Director, and Toby Parker, our Finance
Director - who manage your company's business with great skill and
perseverance as well as good humour. The two executive directors
and I, as your Chairman, benefit from the substantial commercial
property experience of our two non-executive directors - Charles
Delevingne and Terence Nagle. I would like to thank all four of
them, as well as our advisers, for their support over the past
year.
Philip G.H. Collins
Chairman
13th June 2013
STATEMENT OF COMPREHENSIVE INCOME FOR YEAR ENDED 25TH MARCH
2013
Notes 2013 2012
GBP'000 GBP'000
Property Income 1,628 1,503
Property Costs 2 (125) (182)
Administrative Costs 3 (384) (389)
========= =========
1,119 932
Movement in fair value of: Investment
Properties 9 (937) (866)
Profit on Sale of Investment Property 100 346
========= =========
Operating Income 282 412
Investment Income 5 1 3
Finance Costs 5 (117) (123)
========= =========
Income before Taxation 166 292
Taxation 6 (359) (175)
========= =========
(Loss)/Income after Taxation (193) 117
========= =========
Basic and diluted earnings per share 8 (7.1p) 4.3p
The company has no items of other comprehensive income.
STATEMENT OF FINANCIAL POSITION 25TH MARCH 2013
2013 2012
Notes GBP'000 GBP'000
Non Current Assets
Investment Properties 9 17,700 16,965
Investments 12 3 3
========= =========
17,703 16,968
Current Assets
Accounts Receivable 14 191 319
Cash and Cash Equivalents 571 966
========= =========
762 1,285
Non Current Assets held for
Sale 13 - 2,324
Current Liabilities
Accounts Payable 15 (816) (808)
Bank Loans Payable 16 (5,396) -
Income Taxes Payable (380) (217)
========= =========
(6,592) (1,025)
========= =========
Net Current (Liabilities)/Assets (5,830) 2,584
========= =========
Total Assets Less Current
Liabilities 11,873 19,552
Non-Current Liabilities
Bank Loans Payable 16 - (7,187)
Deferred Taxation 17 - (6)
========= =========
Net Assets 11,873 12,359
========= =========
Capital and Reserves
Share Capital 18 789 789
Treasury Shares (1,570) (1,570)
Share Premium Account 1,135 1,135
Capital Redemption Reserve 205 205
Retained Earnings 11,314 11,800
========= =========
11,873 12,359
========= =========
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 25TH MARCH 2013
2013 2012
GBP'000 GBP'000
Cashflow from operating activities
Income before taxation 166 292
Adjusted for:
Depreciation - 6
Allowance for trade receivables 28 -
Decrease in fair value of investment
properties 937 866
Interest income (1) (3)
Interest expense 117 123
Profit on disposal of investment properties (109) (346)
Changes in:
Trade and other receivables 100 (293)
Trade and other payables 14 51
Income taxes paid (208) (248)
Interest paid (117) (123)
========= =========
Net cash from operating activities 936 325
========= =========
Cashflow from investing activities
Interest and other income received 1 3
Purchase of investment properties (1,672) (1,330)
Sale of investment properties 2,424 1,641
========= =========
Net cash from investing activities 753 314
========= =========
Cashflow from financing activities
Dividends paid (293) (286)
Repayments on bank loans (2,850) (1,605)
Drawdown on bank loans 1,059 1,337
========= =========
Net cash from financing activities (2,084) (554)
========= =========
Net (decrease)/increase in cash and
cash equivalents (395) 85
Cash and cash equivalents at beginning
of period 966 881
========= =========
Cash and cash equivalents at end of
period 571 966
========= =========
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 25th MARCH
2013
YEAR ENDED 25 MARCH
2013
Capital Share
Share Redemption Premium Treasury Retained
Capital Reserve Account Shares Earnings Total
GBP 000 GBP 000 GBP 000 GBP 000 GBP 000 GBP 000
Balance at 26 March
2012 789 205 1,135 (1,570) 11,800 12,359
Total comprehensive
income for the year - - - - (193) (193)
Dividends - note 7 - - - - (293) (293)
========= =========== ======== ========== ========== ========
Balance at 25 March
2013 789 205 1,135 (1,570) 11,314 11,873
========= =========== ======== ========== ========== ========
YEAR ENDED 25 MARCH
2012
Capital Share
Share Redemption Premium Treasury Retained
Capital Reserve Account Shares Earnings Total
GBP 000 GBP 000 GBP 000 GBP 000 GBP 000 GBP 000
Balance at 26 March
2011 789 205 1,135 (1,570) 11,969 12,528
Total comprehensive
income for the year - - - - 117 117
Dividends - note 7 - - - - (286) (286)
========= =========== ======== ========== ========== ========
Balance at 25 March
2012 789 205 1,135 (1,570) 11,800 12,359
========= =========== ======== ========== ========== ========
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25TH MARCH
2013
1. ACCOUNTING POLICIES
Wynnstay Properties Plc is a public limited company incorporated
and domiciled in England and Wales. The principal activity of the
Company is property investment, development and management. The
Company's ordinary shares are traded on the Alternative Investment
Market. The Company's registered number is 00022473.
Basis of Preparation
The financial statements have been prepared in accordance with
International Financial Reporting Standards ("IFRS") as adopted by
the EU. The financial statements have been presented in Pounds
Sterling being the functional currency of the Company. The
financial statements have been prepared under the historical cost
basis modified for the revaluation of investment properties,
financial assets and financial liabilities measured at fair value
through profit or loss, and investments.
The financial statements comprise the results of the Company
drawn up to 25th March each year.
(a) New Interpretations and Revised Standards Effective for the
year ended 25th March 2013
The Directors have adopted all new and revised standards and
interpretations issued by the International Accounting Standards
Board ("IASB") and the International Financial Reporting
Interpretations Committee ("IFRIC") of the IASB that are relevant
to the operations and effective for accounting periods beginning on
or after 26th March 2013.
(b) Standards and Interpretations in Issue but not yet
Effective
The International Accounting Standards Board ("IASB") and
International Financial Reporting Interpretations Committee
("IFRIC") have issued revisions to a number of existing standards
and new interpretations with an effective date of implementation
after the date of these financial statements.
It is not anticipated that the adoption of these revised
standards and interpretations will have a material impact on the
figures included in the financial statements in the period of
initial application other than the following revisions to existing
standards.
IFRS 13: Fair Value Measurement - The standard outlines a single
framework for measuring fair value and the required disclosure
thereof when required or permitted by other International Financial
Reporting Standards. The standard is unlikely to impact the fair
value measurement of assets and liabilities that are currently
recognised at fair value, however there will be greater disclosure
given.
The standard is effective for accounting periods beginning on or
after 1st January 2013.
Key Sources of Estimation Uncertainty
The preparation of the financial statements requires management
to make judgements, estimates and assumptions that may affect the
application of accounting policies and the reported amounts of
assets and liabilities, income and expenses.
Revisions to accounting estimates are recognised in the period
in which the estimate is revised if the revision affects only that
period. The key sources of estimation uncertainty that have a
significant risk of causing material adjustment to the carrying
amounts of assets and liabilities within the next financial year
are those relating to the fair value of investment properties.
Investment Properties
All the Company's investment properties are revalued annually
and stated at fair value at 25th March. The aggregate of any
resulting surpluses or deficits are taken to profit or loss.
Non-current assets are classified as held for sale if their
carrying amount will be recovered through a sale transaction rather
than through continuing use. This condition is regarded as met only
when the sale is highly probable and the asset is available for
immediate sale in its present condition. Management must be
committed to the sale, which should be expected to qualify for
recognition as a completed sale within one year from the date of
classification. Non-current assets classified as held for sale are
measured at the lower of the assets' previous carrying amount and
fair value less cost to sell.
Depreciation
In accordance with IAS 40, freehold investment properties are
included in the Statement of Financial Position at fair value, and
are not depreciated.
Other plant and equipment is recognised at cost and depreciated
on a straight line basis calculated at annual rates estimated to
write off each asset over its useful life of 5 years.
Disposal of Investments
The gains and losses on the disposal of investment properties
and other investments are included in the statement of
comprehensive income in the year of disposal.
Property Income
Property income represents the value of accrued charges under
operating leases for rental of the Company's properties. Revenue is
measured at the fair value of the consideration receivable. All
income is derived in the United Kingdom.
Taxation
The tax expense represents the sum of the tax currently payable
and deferred tax. Current tax is the expected tax payable on the
taxable income for the year based on the tax rate enacted or
substantially enacted at the reporting date, and any adjustment to
tax payable in respect of prior years. Taxable profit differs from
income before tax because it excludes items of income or expense
that are deductible in other years, and it further excludes items
that are never taxable or deductible.
Deferred taxation is the tax expected to be payable or
recoverable on differences between the carrying amounts of assets
and liabilities in the financial statements and the corresponding
tax bases used in the computation of taxable profits, and is
accounted for using the statement of financial position liability
method. Deferred tax liabilities are recognised for all taxable
temporary differences (including unrealised gains on revaluation of
investment properties) and deferred tax assets are recognised to
the extent that it is probable that taxable profits will be
available against which deductible temporary differences can be
utilised.
The Company provides for deferred tax on investment properties
by reference to the tax that would be due on the sale of the
investment properties. Deferred tax is calculated at the rates that
are expected to apply in the period when the liability is settled,
or the asset is realised. Deferred tax is charged or credited in
the statement of comprehensive income, including deferred tax on
the revaluation of investment property.
Trade and Other Accounts Receivable
Trade and other receivables are initially measured at fair value
as reduced by appropriate allowances for estimated irrecoverable
amounts. All receivables do not carry any interest and are short
term in nature.
Cash and Cash Equivalents
Cash comprises cash at bank and on demand deposits. Cash
equivalents are short term (less than three months from inception),
repayable on demand and are subject to an insignificant risk of
change in value.
Trade and Other Accounts Payable
Trade and other payables are initially measured at fair value.
All trade and other accounts payable are not interest bearing.
Pensions
Pension contributions towards employees' pension plans are
charged to the statement of comprehensive income as incurred. The
pension scheme is a defined contribution scheme.
2. PROPERTY COSTS
. 2013 2012
GBP'000 GBP'000
Rents payable 4 5
Empty rates 7 44
Twickenham costs 1 66
Property management 43 18
======== ========
55 133
Legal fees 22 39
Agents fees 20 10
Allowance for trade receivables 28 -
======== ========
125 182
======== ========
3. ADMINISTRATIVE COSTS
. 2013 2012
GBP'000 GBP'000
Rents payable - operating lease rentals 18 17
General administration, including
staff costs 330 329
Auditors' remuneration: Audit fees 32 32
Tax services 4 5
Depreciation and amortisation - 6
======== ========
384 389
======== ========
4. STAFF COSTS
2013 2012
GBP'000 GBP'000
Staff costs, including Directors,
during the year were as follows:
Wages and salaries 170 167
Social security costs 22 18
Other pension costs 10 10
======== ========
202 195
======== ========
Details of Directors' emoluments, totalling GBP180,479 (2012:
GBP180,479), are shown in the Report of the Directors.
No. No.
The average number of employees, including
Directors,
engaged wholly in management and administration
was: 5 5
=== ===
The number of Directors for whom the Company
paid pension benefits during the year
was: 1 1
=== ===
5. FINANCE COSTS (NET)
2013 2012
GBP'000 GBP'000
Interest payable on bank loans 117 123
========= =========
Less: Bank interest receivable (1) (3)
========= =========
116 120
========= =========
6. TAXATION
2013 2012
GBP'000 GBP'000
(a) Analysis of the tax charge for
the year:
UK Corporation tax at 24% (2012: 26%) 380 225
Deferred tax - temporary differences (6) (50)
Overprovision in previous year (15) -
======== ========
Current tax charge for the year 359 175
======== ========
(b) Factors affecting the tax charge
for the year: Net Income before taxation 166 292
======== ========
Current Year:
Corporation tax thereon at 24% (2012
- 26%) 40 76
Expenses not deductible for tax purposes 7 14
Excess of capital allowances over
depreciation (5) -
Investment loss on fair value allowable 225 225
Investment gain not taxable (24) (90)
Investment gain taxable 137 -
======== ========
380 225
======== ========
7. DIVIDENDS
2013 2012
GBP'000 GBP'000
Final dividend paid in year of 7.6p
per share
(2012: 7.6p per share) 206 206
Interim dividend paid in year of 3.2p
per share (2012: 2.9p per share) 87 80
======== ========
293 286
======== ========
The Board recommends the payment of a final dividend of 7.6p per
share, which will be recorded in the Financial Statements for the
year ending 25th March 2014.
8. EARNINGS PER SHARE
Basic earnings per share are calculated by dividing
(Loss)/Income after Taxation attributable to Ordinary Shareholders
of (GBP193,000) (2012: income GBP117,000) by the weighted average
number of 2,711,617 (2012:2,711,617) ordinary shares in issue
during the period. There are no instruments in issue that would
have the effect of diluting earnings per share.
9. INVESTMENT PROPERTIES
2013 2012
GBP'000 GBP'000
Investment Properties
Balance at 25th March 2012 19,289 20,120
Additions 1,672 1,330
Disposals (2,324) (1,295)
========= =========
18,637 20,155
Revaluation Deficit (937) (866)
========= =========
Balance at 25th March 2013 17,700 19,289
========= =========
Less:
Assets Held for Sale (note 13) 2,324 1,295
Balance at 25th March 2012
Additions - 2,324
Disposals (2,324) (1,295)
========= =========
Balance at 25th March 2013 - 2,324
========= =========
Investment properties at 25th March
2013 17,700 16,965
========= =========
The Company's freehold investment properties were valued at
GBP17,700,000 by Independent Valuers, Sanderson Weatherall, as at
25th March 2013, in accordance with the RICS Appraisal and
Valuation Standards, on the basis of Market Value, defined as:
"The estimated amount for which a property should exchange on
the date of valuation between a willing buyer and a willing seller
in an arm's-length transaction, after proper marketing wherein the
parties had each acted knowledgeably, prudently and without
compulsion".
Freehold investment properties, including assets held for sale
(Note 13), would have been shown at an historical cost of
GBP16,980,940 (2012: GBP15,187,400) if revaluations had not been
undertaken.
10. OTHER PROPERTY, PLANT AND EQUIPMENT
2013 2012
GBP'000 GBP'000
Cost
Balance at 25th March 2012 and
at 25th March 2013 47 47
Depreciation
Balance at 25th March 2012 47 41
Charge for the Year - 6
Balance at 25th March 2013 47 47
Net Book Values at 25th March 2012
and 25th March 2013 - -
11. OPERATING LEASES RECEIVABLE
2013 2012
GBP'000 GBP'000
The future minimum lease payments receivable
under non-cancellable operating leases
which expire:
Not later than one year 1,366 1,361
Between 2 and 5 years 2,583 2,646
Over 5 years 1,141 144
------- -------
5,090 4
======= =======
Rental Income recognised in the statement of comprehensive
income amounted to GBP1,628,000 (2012:
GBP1,503,000)
Typically, the properties were let for a term of between 5 and
15 years at a market rent with rent reviews every 5 years. The
above maturity analysis reflects future minimum lease payments
receivable to the next break clause in the operating lease. The
properties are leased on terms where the tenant has the
responsibility for repairs and running costs for each individual
unit with a service charge payable to cover common services
provided by the landlord on certain properties.
12. INVESTMENTS
2013 2012
GBP'000 GBP'000
Quoted investments 3 3
======== ========
13. NON CURRENT ASSETS HELD FOR SALE
2013 2012
GBP'000 GBP'000
Investment properties held for sale - 2,324
======== ========
In the March 2012 accounts, the company anticipated that it
would sell two commercial properties within the current financial
year and as a result, these properties were reclassified as held
for sale. In May 2012, the Company completed on the sale of a
development site at Twickenham; the industrial unit in Alton was
sold in August 2012. The Company does not anticipate selling any
properties in the next year.
14. ACCOUNTS RECEIVABLE
2013 2012
GBP'000 GBP'000
Trade receivables 182 8
Other receivables 9 8
-------- --------
191 319
======== ========
Trade receivables include an allowance for bad debts of
GBP28,000 (2012: GBPnil).
15. ACCOUNTS PAYABLE
2013 2012
GBP'000 GBP'000
Trade payables
Other creditors 125 150
Accruals and deferred income 671 624
-------- --------
816 808
======== ========
16. BANK LOANS PAYABLE
2013 2012
GBP'000 GBP'000
Bank loan: repayable on 17 December
2013
Current position 5,396 -
Non-current position - 7,187
-------- --------
5,396 7,187
======== ========
Interest is being charged at 1.25% per annum over LIBOR on the
loan until 17th December 2013.
The loan facility is secured by fixed charges over a number of
freehold land and buildings owned by the Company, which at the year
end had a combined value of GBP13,380,000 (2012: GBP13,443,800).
The undrawn element of the loan facility available at 25th March
2013 was GBP3.1million (2012: GBP1.3million). Since the loan is
repayable on 17th December 2013, the loan is treated as a current
liability in these accounts. The Company has received an indicative
offer to renew the loan facility for a further five years. The main
terms have been agreed in principle with the detailed agreements
currently under negotiation.
17. DEFERRED TAX
The movement in the deferred tax liability during the year is as
follows:
Deferred tax
on property
revaluation
GBP'000
At 26th March 2012 6
Release of provision for the year (6)
-------------
At 25th March 2013 -
=============
A deferred tax asset of GBP291,751 (2012: GBPnil) has not been
recognised, as the Directors believe it is unlikely that there will
be suitable taxable profits in the foreseeable future from which
the future reversal of the underlying timing differences can be
deducted.
18. SHARE CAPITAL
2013 2012
GBP'000 GBP'000
Ordinary Shares of 25p each:
Authorised 2,000 2,000
Allotted, Called Up and Fully Paid 789 789
-------- --------
All shares rank equally in respect
of Shareholder rights.
In March 2010, the company acquired 443,650 Ordinary shares of
Wynnstay Properties Plc from Channel Hotels and Properties Ltd at a
price of GBP3.50 per share. These shares, representing in excess of
14% of the total shares in issue, are held in Treasury.
19. FINANCIAL INSTRUMENTS
The objective of the Company's policies is to manage the
Company's financial risk, secure cost effective funding for the
Company's operations and to minimise the adverse effects of
fluctuations in the financial markets on the value of the Company's
financial assets and liabilities, on reported profitability and on
the cash flows of the Company.
At 25th March 2013 the Company's financial instruments comprised
borrowings and cash at bank and in hand, with short term
receivables and short term payables excluded from IFRS 7. The main
purpose of these financial instruments was to raise finance for the
Company's operations. Throughout the period under review, the
Company has not traded in any other financial instruments and the
fair value of the Company's financial assets and liabilities at
25th March 2013 is not materially different from their book value.
The Board reviews and agrees policies for managing each of these
risks and they are summarised below:
Credit Risk
The risk of financial loss due to a counterparty's failure to
honour its obligations arises principally in connection with
property leases and the investment of surplus cash.
Tenant rent payments are monitored regularly and appropriate
action is taken to recover monies owed or, if necessary, to
terminate the lease. Funds may be invested and loan transactions
contracted only with banks and financial institutions with a high
credit rating.
The Company has no significant concentration of credit risk
associated with trading counterparties (considered to be over 5% of
net assets) with exposure spread over a large number of
tenancies.
Concentration of credit risk exists to the extent that at 25th
March 2013 and 2012, current account and short term deposits were
held with two financial institutions, Svenska Handelsbanken AB and
C Hoare & Co. Maximum exposure to credit risk on cash and cash
equivalents at 25th March 2013 was GBP571,000 (2012:
GBP966,000).
Currency Risk
As the Company's assets and liabilities are denominated in
Pounds Sterling, there is no exposure to currency risk.
Interest Rate Risk
The Company is exposed to cash flow interest rate risk as it
currently borrows at floating interest rates. The Company monitors
and manages its interest rate exposure on a periodic basis. The
Company finances its operations through a combination of retained
profits and bank borrowings.
Interest Rate Sensitivity
Financial instruments affected by interest rate risk include
loan borrowings and cash deposits. The analysis below shows the
sensitivity of the statement of comprehensive income and equity to
a 0.5% change in interest rates:
0.5% decrease in 0.5% decrease in
interest rates interest rates
2013 2012 2013 2012
GBP'000 GBP'000 GBP'000 GBP'000
Impact of net interest payable
- gain/(loss) 27 36 (36)
Impact of net interest receivable
- (loss)/gain (3) (5) 3 5
-------- -------- -------- --------
Total impact on pre tax profit
and equity 24 31 (24) (31)
======== ======== ======== ========
The net exposure of the Company to interest rate fluctuations
was as follows:
2013 2012
GBP'000 GBP'000
Floating rate borrowings (bank loans) (5,396) (7,187)
Less: cash and cash equivalents 571 966
------- -------
(4,825) (6,221)
======= =======
Fair Value of Financial Instruments
Except as detailed in the following table, management consider
the carrying amounts of financial assets and financial liabilities
recognised at amortised cost approximate to their fair value.
2013 2013 2012 2012
Book Value Fair Value Book Value Fair Value
GBP'000 GBP'000 GBP'000 GBP'000
Interest bearing borrowings
(note 16) (5,396) (5,411) (7,187) (7,037)
----------- ----------- ----------- -----------
Total (5,396) (5,411) (7,187) (7,037)
=========== =========== =========== ===========
Categories of Financial Instruments
2013 2012
GBP'000 GBP'000
Financial assets:
Quoted investments 3 3
Loans and receivables 191 319
Cash and cash equivalents 571 966
------- -------
Total financial assets 765 1,288
Non-financial assets 17,700 19,289
------- -------
Total assets 18,465 20,577
======= =======
Financial liabilities at amortised
cost: 6,592 8,212
Non-financial liabilities - 6
------- -------
Total liabilities 6.592 8,218
Shareholders' equity 11,873 12,359
------- -------
Total shareholders' equity and liabilities 18,465 20,577
======= =======
The only financial instruments measured subsequent to initial
recognition at fair value as at 25th March are quoted investments.
These are included in level 1 in the IFRS 7 hierarchy as they are
based on quoted prices in active markets.
Capital Management
The primary objectives of the Company's capital management
are:
- to safeguard the Company's ability to continue as a going
concern, so that it can continue to provide returns for
shareholders: and
- to enable the Company to respond quickly to changes in market
conditions and to take advantage of opportunities.
Capital comprises Shareholders' equity plus net borrowings. The
Company monitors capital using loan to value and gearing ratios.
The former is calculated by reference to total net debt as a
percentage of the year end valuation of, the investment property
portfolio. Gearing ratio is the percentage of net borrowings
divided by Shareholders' equity. Net borrowings comprise total
borrowings less cash and cash equivalents.
The Company's policy is that the loan to value ratio should not
exceed 60% and that the gearing ratio should not exceed 100%.
2013 2012
GBP'000 GBP'000
Net borrowings and overdraft 5,396 7,187
Cash and cash equivalents (571) (966)
======== ========
Net borrowings 4,825 6,221
======== ========
Shareholders' equity 11,873 12,359
======== ========
Investment properties 17,700 19,289
======== ========
Loan to value ratio 27.3% 32.3%
Net gearing ratio 40.6% 50.3%
20. STATEMENT OF CASH FLOWS
Analysis of Net Debt 25th March Cash 26th March
2013 Movement 2012
GBP'000 GBP'000 GBP'000
Cash and cash equivalents (571) 395 (966)
Bank loan due after more than
one year 5,396 (1,791) 7,187
Net Debt 4,825 (1,396) 6,221
21. COMMITMENTS UNDER OPERATING LEASES
Future rental commitments at 25th March 2013 under
non-cancellable operating leases are as follows:-
2013 2012
GBP'000 GBP'000
Within one year 22 15
Between two to five years 3 7
======= =======
25 22
======= =======
22. RELATED PARTY TRANSACTIONS
The Company has entered into an agreement with I. F. M.
Consultants Ltd, a company owned and controlled by T.J.C. Parker, a
Director of the Company, for that company to provide certain
consultancy services. During the year to 25th March 2013, I.F.M.
Consultants Ltd was paid GBP36,648 (2012: GBP36,648). There were no
other related party transactions other than with the Directors,
which have been disclosed under Directors' Emoluments in the Report
of the Directors on page 8.
23. EVENTS AFTER THE END OF THE REPORTING PERIOD
On 20 May 2013, the company completed the purchase of an
industrial estate comprising seven units in Hailsham, East Sussex
for GBP905,000. This was financed from the Company's own resources
together with an increase in bank borrowings under our facility of
GBP600,000.
24. SEGMENTAL REPORTING
Industrial Retail Office Total
2013 2012 2013 2012 2013 2012 2013 2012
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Rental Income 1,068 1,020 195 214 365 269 1,628 1,503
========= ========= ========= ========= ========= ========= =========
Loss on property investments
at fair value (162) (866) (685) - (90) - (937) (866)
========= ========= ========= ========= ========= ========= =========
Total income and gain/(loss) 905 154 (490) 214 275 269 691 637
Property expenses (125) (182) - - - - (125) (182)
========= ========= ========= ========= ========= ========= ========= =========
Segment (loss)/profit 779 (28) (490) 214 275 269 565 455
========= ========= ========= ========= ========= =========
Unallocated corporate
expenses (384) (389)
Profit on sale of investment
property 100 267 - - - 79 100 346
=========
Operating income 282 412
Interest expense (all
relating to property
loans) (117) (123)
Interest income and
other income 1 3
=========
Income before taxation 166 292
=========
Other information Industrial Retail Office Total
2013 2012 2013 2012 2013 2012 2013 2012
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Segment assets 10,588 13,036 3,275 3,960 3,837 2,293 17,700 19,289
--------- --------- --------- --------- --------- --------- --------- ---------
Segment assets held
as security 6,268 7,191 3,275 3,960 3,837 2,293 13,380 13,444
========= ========= ========= ========= ========= ========= ========= =========
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR NKNDBDBKDKAD
Wynnstay Properties (LSE:WSP)
Historical Stock Chart
From Jun 2024 to Jul 2024
Wynnstay Properties (LSE:WSP)
Historical Stock Chart
From Jul 2023 to Jul 2024
